The first decentralized lending protocol to connect The Open Network and Ethereum blockchain
Key takeaways:
- Tonpound is the first lending protocol that allows use of TON staked in nodes on The Open Network as collateral on Ethereum blockchain.
- This potentially connects billions of dollars worth of liquidity on both networks, allowing TON holders to use powerful DeFi apps on other blockchains while simultaneously drawing attention of Ethereum users to The Open Network
- The Tonpound DAO will utilize an innovative system of governance NFTs (gNFT) for voting and providing benefits such as distribution of protocol earnings.
- Tonpound Participation Index (TPI) token must be burned to mint gNFTs. TPI will serve as an index of community engagement and will be airdropped for free to early supporters and liquidity providers (Fair Launch).
- With the MVP already shipped, the protocol launch is scheduled for early Q2 2023, including the integration of further blockchains throughout the year.
Introduction
The Open Network’s native token, Toncoin ($TON), is one of the largest cryptocurrencies on the market, being valued at $3.5 Billion capitalization. Nevertheless, since DeFi apps have only started to emerge on TON, Toncoin holders currently have almost zero alternatives to node staking when it comes to passive income.
To leverage this potential, the Tonpound team has made the first move on the market and built a lending protocol which will offer an ultimate solution for maximizing profits from otherwise unallocated TON holdings.
Tonpound’s first version will be released on Ethereum and provide support for TON through third-party staking solutions like πTON. As a result, by using Tonpound, Toncoin holders will at the same time enjoy triple benefit:
- Collect staking rewards from the TON node.
- Earn interest on lending wrapped TON (Supply APR).
- Leverage their position by borrowing more assets on Ethereum network.
Tonpound Markets
Tonpound uses a trusted model of Supply and Borrow markets, where lenders can earn on their assets by offering them to borrowers, who pay interest to take a loan. The interest rates are determined by the supply and demand for each asset, with higher demand leading to higher interest rates.
Following ERC-20 tokens will be supported: TON (pTON), WBTC, ETH, USDT, USDC, DAI. Over time, more assets can be added to the markets through community voting.
Loans are available only in over-collateralized matter. To borrow one asset, a user must deposit a greater amount of another asset as security. The prices of Tonpound’s assets are continuously monitored through oracles and, if the collateral value falls below a certain threshold, the position becomes susceptible to liquidation.
The inclusion of a wrapped version of TON (pTON) is a crucial and distinctive feature of Tonpound which is set to attract liquidity both from The Open Network and Ethereum blockchain. Remarkably, Tonpound users can earn both TON node feeds and Supply APR simultaneously, significantly boosting their profits from low-risk passive income.
Tokenomics & Governance
Tonpound will implement an innovative system of tracking user’s involvement to gradually transfer voting power from the developers to the community.
At the start, the Tonpound Participation Index token (TPI) will serve as an indicator of community engagement. Apart from the necessary allocations like Liquidity or Treasury, its supply will be distributed only to the team and users who actively participate in the development of the protocol. No token sale of any sort will take place.
The TPI tokenomics are as follows:
Total Supply — 500 Million (500,000,000 TPI).
Liquidity Providers — 200 Million (200,000,000 TPI).
Team — 100 Million (100,000,000 TPI).
Treasury (Partnerships, Marketing, Bounties) — 100 Million (100,000,000 TPI).
Liquidity & Market Making — 50 Million (50,000,000 TPI).
Community Airdrop — 50 Million (50,000,000 TPI).
TPI will be a scarce currency that must be burned to mint and upgrade governance NFTs (gNFT), which, in turn, will serve as the primary functional unit of the Tonpound DAO. The gNFTs will grant its holders access to the DAO together with voting power and benefits such as share of the protocol income.
All TPI will be burned over the course of the next 2 years as users spend them to collect governance NFTs. This gamified approach will not only keep the community engaged by competing for TPI but also promote a more equal distribution of gNFTs among a larger number of small holders.
Outlook
The first version of Tonpound will be released on Ethereum in the second quarter of 2023. As the development progresses, the support for more blockchains including The Open Network will be added in the future.
The distribution of TPI to community based on user involvement will give everyone a chance to participate in the protocol development and become a member of Tonpound DAO. We welcome everyone to compete for the upcoming airdrop — make sure to stay tuned don’t miss your chance to get involved!
Being Toncoin holders ourselves, we aimed to build a platform for utilizing TON liquidity and bridging it to other major blockchains. Tonpound’s ambition is to become the largest lending protocol on TON, Ethereum, and other networks by offering unique earning opportunities for its users and DAO members.
Follow our social media to stay up-to-date with the Tonpound’s story:
Website: Tonpound.com
Twitter: twitter.com/Tonpound_com
Telegram announcements: t.me/Tonpound_announcement
Telegram chat: t.me/Tonpound_chat
Discord: discord.gg/Tonpound
Medium: medium.com/@Tonpound.com
Gitbook: tonpound.gitbook.io/
